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Which asset carries a 0% risk weight for a bank?
ACredit card dues of a client
BA Government dated security
CA AAA rated foreign bank
DA housing loan to a customer
Answer & Solution
Correct answer: B. A Government dated security
1. Risk weights differ by asset.
2. A AAA rated foreign bank gets 20 percent.
3. A Government dated security gets 0 percent.
_Source: Reserve Bank of India, Glossary (rbi.org.in)._
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